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Faroe Petroleum ups reserve estimate

Energy company credits Norway in part for near-doubling of 2015 reserves.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |   Jan. 6, 2016 at 8:10 AM
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LONDON, Jan. 6 (UPI) -- Riding on the potential of its Norwegian assets, mid-sized energy company Faroe Petroleum said its reserve holdings for 2015 nearly doubled.

The company said an independent technical report from LR Senergy Ltd. found proved and probable reserves to Faroe as of Jan 1 were around 60.6 million barrels of oil equivalent, nearly twice as much as the assessment one year ago.

Faroe pointed to the Butch field in Norway, in which it holds a 15 percent stake, and the Pil field, in which it holds a 25 percent stake, for much of the increase in proved plus probable reserves.

CEO Graham Stewart said the reserve estimate shows the company is on the right path in a market where lower crude oil prices are reducing investment and operational activity.

"We look forward to an exciting three-well exploration drilling program for 2016 in Norway, which is firming up on cost efficient terms," he said in a statement.

Statistics Norway, the government's data-recording agency, said it expects total investments in the energy sector to decline 1.4 percent from last year to $23.6 billion for 2016.

Next week, the Norwegian government details investment and production results from last year.

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